You don’t imagine it. New homes across the United States are getting smaller. However, home trend experts at the National Conference of Real Estate Editors say the kitchen is getting bigger, with the huge kitchen island replacing the dining room of the new home.
According to a report by GrowthSpotter, the vice president of research at the New Orleans Conference, told attendees at the New Orleans Conference that New Homes today is the smallest in 15 years. “That’s the big story. It’s a big trend and we define it best with the word ‘contraction’,” she said. “Last year, the median size of the new home was 2,150 square feet. It’s been down for the 10th consecutive year. It’s 300 square feet smaller than 10 years ago, and it’s the smallest new home since 2009.”
The reasons for this are both economic and consumer-driven, Quint said. Buyers today are more likely to find a home that meets the needs of their current space, rather than the expected needs. She said the data shows that preferences for smaller spaces reach generations.
“When we look at the data over generations, we see that X and Boomers are really coming down at the size of the house they want. And since these two generations are about 70% of buyers, they want a smaller home than they were 20 years ago.”
This trend has also been converted to lot sizes, and is now on average 1,000 square feet smaller than it was 10 years ago.
“If you look at the census data on lot sizes, 10 or 15 years ago, a typical new lot was 9,400 square feet. Now it’s 8,400 square feet,” Quint said.
However, home prices are 30% higher than just five years ago, which also encourages a trend towards shrinking. The affordability crisis has also led to a “golden age” of home remodeling, according to Bill Darcy, CEO of the National Kitchen & Bath Association. Homeowners with low mortgage interest rates and stock growth are choosing to remodel rather than move.
“I don’t think it’ll be late anytime soon,” Darcy said. “And home availability, mortgage fees, all of these things encourage more remodeling spending despite the dynamics that are currently rising costs of both labor and materials.”
Most of the remodeling spending comes in the kitchen and bathroom. According to Quint, NAHB has just released a list of the 10 most desirable features for both new home buyers and modders, including walk-in pantry, drinking water filtration, pull-out shelf, center island, stone counter, embedded lighting, customized backsplash, wine and device designated storage.
“We’re also seeing that there’s no dining room in our new home,” Darcy added. “That’s why the kitchen is also a living room. The island is so big, it’s the same room. So the kitchen says it took over that first floor.”
Buyer preferences are shifting towards homes with two major suites, even if they mean fewer bedrooms. Quint said 20 years ago, 75% of buyers were shopping in a four-bedroom home with one major suite. “The current majority, 55%, prefer the one-bedroom suite option over the two-bedroom suite option,” she said.
“Yes, they want not only one bigger bedroom, but a bigger bedroom. Even if they get one bedroom overall. And this probably has a lot to do with the family. A multi-generational home is going on a lot.
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